Australian Sharemarket Slumps 1.24% Amid Global Selloffs

The Australian sharemarket experienced a sharp decline of 1.24% on February 10, 1999, tracking similar selloffs in European and United States markets overnight. The benchmark all-ordinaries index shed 35.9 points to 2854.8, with telecommunications and Internet stocks being particularly hard hit. Analysts attributed the market's sentiment to the falls in European and US markets, citing that the Australian market had been enjoying a "pretty good run up" and was due for a correction.

Key Takeaways:

• The Australian sharemarket slumped 1.24% on February 10, 1999, with the benchmark all-ordinaries index shedding 35.9 points to 2854.8.
• Telecommunications and Internet stocks were particularly affected, with Telstra retreating 24 cents to $8.30 and rival Cable & Wireless Optus slipping 10 to $3.70.
• Bank stocks took a dive, with National Australia Bank, Westpac, and ANZ experiencing significant declines.
• Colonial added 12.8 to $6.018, bucking the trend, while News Corp slumped 20 to $11.16.
• Biota Holdings spiked 46 cents to $8.71 after announcing federal health authority approval for its influenza treatment.
• Mining contractors Henry Walker and Eltin rallied on news of a proposed merger, with Henry Walker gaining 13 cents to $1.80 and Eltin stacking on 13.5 to $1.625.

Statistics:

• The all-ordinaries index shed 35.9 points to 2854.8.
• Telecommunications stocks lost 24 cents to $8.30 (Telstra) and 10 to $3.70 (Cable & Wireless Optus).
• National Australia Bank fell 35 cents to $25.50.
• Westpac and ANZ retreated 11 cents to $10.52 and 6.1 cents to $10.29, respectively.
• Preliminary national turnover was 399.39 million stocks changing hands for $A1.14 billion ($US.73 billion).
• Falling stocks outnumbered rising stocks 860 to 400.
• 437 stocks remained steady.

Sources:

• The Australian
• Wilson HTM
• ASIA PULSE (C) 1999 Asia Pulse Pte Ltd
• COMTEX News Service (http://www.comtexnews.com)